KPMG comments on today’s Bank of England money and credit data

Karim Haji, head of financial services at KPMG UK, said:

“Although April was when the new energy price cap kicked in, most households wouldn’t have received their revised utility bills until the end of the month, with the real impact on spending more likely to be seen in May.

“Given the starkness of some of the data here – such as large increases in consumer borrowing – banks will have welcomed the measures announced by the Chancellor last week. Some had already introduced measures like payment holidays and increased overdrafts to help consumers where they could. Growth in credit card borrowing remained at double digits in April, perhaps indicative of some households smoothing their consumption against the backdrop of lower disposable incomes.

“Lenders will be cognisant of a housing market that may be showing signs of cooling. Higher rates and falling real incomes are likely to dampen demand after a period of loose monetary policy. In the case of consumer and mortgage lending, banks are tracking the data even more closely than usual for the early signs of distress, to protect both themselves and households.”

 

ENDS.

 

Media contact:

For further information please contact:

KPMG Media Relations

Gerard Swinley

Gerard.swinley@kpmg.co.uk

M: +44 7510 375540

 

About KPMG:

KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 15,300 partners and staff.  The UK firm recorded a revenue of £2.43 billion in the year ended 30 September 2021.

KPMG is a global organisation of independent professional services firms providing Audit, Legal, Tax and Advisory services. It operates in 145 countries and territories with more than 236,000 partners and employees working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.